UT Bank has recorded a profit before tax of GH¢ 13 million last year, representing a 48 per cent decline year-on-year.

The decline in profitability was mainly due to a sharp growth in interest expenses and higher provisioning made during the year.

Speaking at the bank’s annual general meeting in Accra Prince Kofi Amoabeng, Chief Executive Officer of the bank, said UT’s growth in interest income remained strong year-on-year, rising by 40 per cent to GH¢ 188 million mainly as a result of the growth in the bank’s loan book.

“Non-funded income growth was equally impressive, it grew by 23 per cent to GH¢ 53 million in 2013,” he said, explaining that the growth stemmed from increased transactional business and trade finance activities.

Mr. Amoabeng said the bank was fast growing in trade finance space, saying that last year alone the bank participated in transaction worth over $ 200 million, representing more than 100 per cent growth over the previous year.

“Our customers appreciate our speed for doing business and the varied solutions we offer for their complex needs,” he said.

Mr. Amoabeng said: “On the other hand we continued to struggle with high interest expenses, a symptom of our legacy of expensive deposits and high interest rates on government securities.”

He said although, the rates on government securities declined slightly during the year, the average rates for 2013 were higher compared to the previous year.

On the outlook for the bank, he said the UT had invested heavily in e-business platform and expects that it would translate into faster and simpler services in 2014.

“The introduction of the mobile banking platform will serve as a foundation for implementing other branchless and agency banking products. The import of these to our business cannot be overemphasised in the light of the need for growth in cheap deposits,” he said.